BetaShares Australian High Interest Cash ETF (ASX: AAA)* provides access to an interest rate currently more than 1.5x the average rate offered by major platforms*.
Cash is known as a reliable defensive asset class. It can also serve a number of key strategic purposes in a portfolio – providing stability, regular income, and the flexibility to take advantage of opportunities in other asset classes.
In the later stages of the cycle, a meaningful cash position can provide a stable foundation to help manage periods of heightened market volatility. However, it is also important to consider two key factors:
- That a large allocation to cash is ‘put to work’ and doesn’t become a drag on performance; and
- Whether the position provides the necessary liquidity to take advantage of opportunities or to re-balance portfolios after significant market movements.
In addition, advisers who scrutinise the interest rates provided by investment platforms often feel short-changed, with those rates often significantly below the already low RBA cash rate.
Cash ETFs may provide a more attractive option. The BetaShares Australian High Interest Cash ETF (ASX: AAA) is the oldest and largest cash ETF on the Australian market with AUM currently over $1.6B.
It was designed to provide investors with a means of enhancing the returns on their cash allocation, with the intraday liquidity and flexibility that comes with the ETF fund structure. Importantly, AAA also accrues interest daily and pays distributions monthly.
Why consider AAA?
AAA offers a competitive solution
The BetaShares Australian High Interest Cash ETF (ASX: AAA) offers the benefits of an investment that is accessible daily (subject to the normal ASX settlement cycle), and regular income from attractive interest rates, paid monthly.
By leaving cash on the platform you’re leaving cash on the table
AAA has become the cash management solution for thousands of Australian investors and their advisers.
Simple access to cash returns
AAA is structured simply. The ETF holds Australian dollars in bank accounts with several major banks in Australia and pays attractive income distributions.
Cash is capital stable. Unlike fixed interest bonds and bond funds invested in fixed interest bonds, the capital value of a cash investment will not vary, regardless of changes in the interest rate environment.
BetaShares’ AAA – a $1.6 billion fund
With a track record of competitive, above-market rates, BetaShares’ cash ETF (ASX: AAA) has cemented its place as an attractive option for advisers looking to boost returns from cash. Request an information pack, or contact BetaShares Adviser Services team to learn more.
*As at 31 March 2020. Rate earned on AAA’s bank account deposits, after management costs. Rate is variable. Average of rate for working cash accounts offered by the five largest investment platforms in Australia, subject to change. Past interest rates are not indicative of future rates. Source: Publicly available data or providers.